Corporate Reporting on Water Risk: A Benchmarking Study of 100 Companies

The purpose of this report is to help investors and companies understand how companies in vulnerable sectors are evaluating, managing, and disclosing water risks in their operations, supply chains, and products. With data support from fi nancial information provider Bloomberg and analytical support from the fi nancial services fi rm UBS Limited, the report evaluates and ranks the water disclosure practices of 100 publicly-traded companies in eight key sectors exposed to water-related risks: beverage, chemicals, electric power, food, homebuilding, mining, oil and gas, and semiconductors.

To be helpful for investors, company disclosure requires more than just a mention of water and its risks. Measuring and reporting water-related risks and opportunities is complex, and the methodologies and standards for doing so are still nascent. Nevertheless, there is growing consensus in business and investor circles regarding the most critical elements of water reporting. What is central to useful water reporting is its inclusion in company fi nancial fi lings – annual 10-Ks (or 20-Fs or 40-Fs for non-U.S. companies) – rather than just sustainability reports. Also critical is discussion of relevant management systems and strategies, provision of water accounting data that puts performance in geographic context, and inclusion of supply chain water risks in the analysis.